A maker of payment networks, Mastercard processes transactions for consumers, banks, merchants, and governments around the world through its familiar red-and-yellow card brand. It was born in 1966 as the Interbank Card Association, created by US banks in Buffalo, New York, to compete with BankAmericard (later Visa). The company called itself "Master Charge" until 1979, when it simplified to Mastercard, and its overlapping-circle logo was designed to show the connection between shoppers and merchants.
Q2 2026 revenue rose 14.1% to $9.277B with operating margin at 60.2%
reached 60.2%, the highest in the reported quarterly series. rose 14.1% to $9.277B and rose 22.1% to $4.97 as and value-added services growth carried the quarter. The business is compounding margin and earnings gains, with down 28.8% on the year.
Key takeaways
rose 1.8 points sequentially and 1.5 points to 60.2%, the top reading in the quarterly table, while was 61.1% per the MD&A.
rose 14.1% to $9.277B and 10.5% from Q1, with revenue up 10% and up 20% driven by security, authentication, and business insights offerings.
rose 22.1% to $4.97 and rose 18.6% to $4.388B , with up 17.0% to $5.587B.
Section summaries
Management's Discussion and Analysis
Q2 2026 net revenue rose 14% to $9.3B driven by payment network and value-added services growth, with adjusted operating margin expanding to 61.1%.
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Net increased 14% (12% ) to $9.3B, with revenue up 10% and up 20%.
rose 22%, partially offsetting growth, and adjusted operating expenses rose 11% on personnel and data processing costs for strategic initiatives.
fell 18.0% to $3.773B while fell 23.7% to $3.482B; the company held $11.3B cash and issued $5.0B new debt, lifting 28.9% sequentially to $22.2B.
declined 16.6% sequentially and 28.8% to $5.606B.
What changed
Cross-border volume disclosure: Q1 2026 showed 21% USD growth resuming after the 18% FY2025 figure; this Q2 filing's MD&A does not state a Q2 cross-border figure, leaving the Q1 pace unconfirmed for the quarter.
Litigation provisions: FY2025 totaled $504M stepping down to $83M by Q3; this Q2 filing's sections do not report a Q2 2026 litigation provision figure, after the prior flag to see if charges stay absent or resume.
: FY2025 was 19.4% under Pillar 2; the Q2 10-Q sections do not state the Q2 2026 rate, after the flag to confirm the 19.4% level holds at the quarterly level.
rose 20% in Q2 versus 22% in Q1 2026, below the 23% FY2025 rate, consistent with the flag that acquisition benefits fade as they lap out.
fell to $5.606B from $7.746B at FY2025 year-end, a 28.8% annual decline not seen in the prior annual series which rose 18.9% in FY2025.
What to watch
Q3 2026 cross-border volume growth rate versus the 21% Q1 2026 figure to confirm the recovery is sustaining, or whether the disclosure lapses again.
Q3 2026 litigation provision total to see if a charge resumes after this filing's omission of a Q2 figure against the $504M 2025 full-year.
Q3 2026 disclosure to confirm whether the Pillar 2-driven 19.4% FY2025 level holds at the quarterly level.
Q3 2026 growth rate versus the 20% Q2 figure as acquisition benefits continue to fade.
growth was driven by higher domestic and cross-border volumes and , partially offset by a 22% increase in .
Value-added services growth was fueled by security solutions, consumer acquisition and engagement, digital and authentication, and business insights.
Adjusted operating expenses rose 11% (10% ) mainly due to higher personnel and data processing costs supporting strategic initiatives.
Adjusted improved to 61.1% from 59.9%, and adjusted grew 21% to $5.04.
Liquidity remained strong with $11.6B in cash and investments, $6.8B in , and $5.0B in new debt issued; $8.9B was spent on share repurchases.
Quantitative and Qualitative Disclosures About Market Risk
Mastercard's market risk from FX and interest rates is limited; it uses derivatives to hedge exposures, with a 10% adverse FX move potentially causing a $319M fair value loss on contracts.
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A hypothetical 10% adverse change in functional currencies could result in a fair value net loss of approximately $319 million on foreign exchange derivative contracts outstanding at June 30, 2026, before considering offsetting effects of hedged activity.
The company enters into foreign exchange derivatives to manage currency exposure from anticipated receipts and disbursements in non-functional currencies, primarily the U.S. dollar and euro.
Short-duration foreign exchange derivatives used for daily settlement activities are not materially impacted by a hypothetical 10% adverse currency move.
As of June 30, 2026, Mastercard had no foreign exchange derivatives designated as net investment hedges for its foreign subsidiaries.
A hypothetical 100 adverse change in interest rates would not materially impact the fair value of or interest rate derivatives designated as fair value hedges of fixed-rate debt.